The annual rate of inflation in November was by 0.3% higher than a month before and by 7.8% higher than last November. According to the information provided by the National Bank of Moldova, the annual inflation will continue to grow, also because of the unfavorable weather conditions this year and the low comparison base of last year, IPN reports.
In November, food prices rose by 2.84% on October. The prices of fresh vegetables, bakery products, fats and meat increased owing to this summer’s drought, which seriously affected crops and to the depreciation of the national currency against the US dollar by 5.3% during the last three months.
Fuel prices decreased by 1.9% following the diminution of gasoline and diesel fuel prices in October and November. The additional adjustment of the tariffs of regulated services, the rise in excise duties on particular categories of goods and the secondary effects of these rises will generate additional inflationist pressure on prices.
While the prices grow, the National Bank of Moldova signals the risk that the incomes of the population and national producers will decrease in the short term following the reduction in external trade and remittances. These risks derive from the poor economic activity in the Eurozone countries and the recession in Russia, which are the main foreign partners of Moldova.
